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Bots have become synonymous with buying and selling of financial assets at the correct time. These bots use strategies based on their own algorithms to buy, sell and hold your financial assets keeping your portfolio balanced and healthy.

Talk about asset investing on autopilot.

This article specifically looks at rebalancing bots, what they are and what they do, and their advantages and disadvantages. Let’s start by looking at what they do.

Role of Portfolio Rebalancing Bots

A rebalancing bot uses a rebalancing strategy to increase revenue and reduce risks and losses between selected assets. The bot adjusts the weightings of different classes of assets in an investment portfolio. As a result, you have the desired level of risk, and your portfolio is a mix of investment assets suitable to your risk appetite and investment goals. Portfolio rebalancing bots are a great tool to your portfolio management strategy.

When you don’t rebalance your portfolio regularly, you leave yourself open to volatility in your investments. Also, you are open to more risks than you are comfortable with.

But a portfolio rebalancing bot makes rebalancing your mix of investments smoother even as your asset prices drop and surge at different times. They do this by periodically selling or buying assets in order to maintain the original asset allocation.

Typically when you first invest, the assets in your portfolio tend to be proportional, meaning each asset has the same value as the next. But you will notice that with time there is an imbalance as one asset’s dollar value increases. As a result, that asset represents the highest value of your total asset capital. Rebalancing optimizes your entire investment portfolio by selling such assets that have increased in value and redistributing the funds to assets that need a little help.

The bots will take the profits from the sale and invest them in struggling assets to bring them back to their original levels while creating room for more profits.

How Does A Rebalancing Bot Work?

The rebalancing bot works when an asset’s price is moving downward. The bot is prompted by the decreased value of one asset to rotate another asset in the portfolio and use the proceeds to boost the struggling asset.

If the struggling asset is doing very badly on the market, the bot will sell it off and reinvest the money into a high achieving asset. 

So rebalancing bots rebalance all the assets in the portfolio.

Advantages of Portfolio Rebalancing Bots:

They use proven algorithms to effect buys and sells

They do not hold on to non-profitable assets as humans would out of sentiment

They continuously conduct technical analysis and subsequently actively change asset allocations to match the desired allocations

They limit exposure to risk so that both future losses and gains of your investment remain calibrated

They improve portfolio diversity by redirecting sales profits to more assets. A diverse portfolio allows you to compensate for lost assets.

Selling assets that jump too high makes room for other assets

Disadvantages of portfolio Rebalancing Bots:

The risk mitigation aspect of portfolio rebalancing relies heavily on the momentum of high performers rising and low performers falling to determine sales and buys. But the market doesn’t always follow this pattern, and the momentum may shift, making it difficult to maintain or restore the original asset allocation.

Due to changing market conditions, the bot cannot guarantee that higher performers won’t fall and poor performers won’t rise. The bot may end up directing funds to an asset that eventually fails outstandingly, so you go at a loss.

Why Are Portfolio Rebalancing Bots Good at What They Do?

Rebalancing your asset portfolio is not a simple task. It is a complex process requiring complicated strategies to identify the timing for selling and buying the assets and calculating the portfolio balance.

Remember, the portfolio rebalancing bots are emotionless machines.

Unfortunately, emotions hold humans back when trading because we tend to make emotional decisions. The emotionless approach makes these bots good at their actions because they make impartial decisions.

For example, during market crashes, people tend to want to sell everything they own to salvage their financial situation and liquidate their assets before it is too late. This emotional move could backfire and leave them in an even more vulnerable financial position. But bots, using strategies based on indicators, thresholds, and other important algorithm-based factors, rebalance your investment portfolio to make the best of the market conditions without panicking.

Sometimes, you may want to hold on to an asset because you are fascinated by how it looks on paper. However, it generates a lackluster response, and demand for it is very disappointing, and it must be discarded as soon as possible. Bots take such decisions with no regret because the asset doesn’t generate profits, so it is not needed in the investment portfolio.

Portfolio Rebalancing VS HODL

HODL is an acronym for the term “Hold On for Dear Life”, which is a widely used concept in the cryptocurrency community referring to not selling your digital assets even during extreme price and market changes. This strategy requires you to buy and hold on to your crypto assets indefinitely and not sell even if the markets become volatile or crash. It follows the traditional buy-and-hold strategy, where investors hope to maintain a relatively stable portfolio in the long term despite short-term market fluctuations. 

Many people prefer rebalancing over portfolio rebalancing because it offers opportunities to diversify and make profits instead of holding on to a stagnant asset in a risky trading environment. Portfolio rebalancing is an aggressive way of trading, while HODL is a passive option.

The Emotionless Traders

Portfolio rebalancing bots are known as emotionless traders. Using these bots will allow you to relinquish control of the rebalancing task and rely on strategies that have been proven to work for many traders.

Trading psychology is a thing where traders are encouraged to have the right trader’s mindset to help them maneuver the murky waters of trading financial assets. The main components of trading psychology include containing emotion, exercising discipline, and thinking quickly. Unfortunately, many people find it hard to master these skills, putting their assets at risk. If this is you, don’t worry, emotionless traders, AKA portfolio rebalancing bots, are your best trading partners.

Trading psychology requires you to keep two main emotions at bay: Fear and greed. These are the two driving forces behind sentiment in trading. Luckily for the human race, which is known for its penchant for greed and susceptibility to fear, rebalancing bots do not suffer the same shortcomings, making them a great resource for rebalancing investment portfolios.

There are quite a number of portfolio rebalancing bots software available that you can use. Here are the best crypto portfolio rebalancing bots on the market and what they offer traders. These bots promise ease of trading and trading anywhere and anytime. 

Top Portfolio Rebalancing Bots

Filters

Auto Trading
Pricing
Plans
Account
3Commas.png

3Commas

From $174/year

If you are looking for a top crypto trading platform that offers excellent reliability and a smooth trading experience, 3commas is a highly recommended choice. It was founded in 2017 to provide crypto traders of all levels with a competitive edge thanks to its complete suite of automated and manual tools. 

3Commas offers excellent trading tools with an intuitive layout and plenty of educational materials, making it an ideal choice for beginner and advanced traders.

3Comma's portfolio Rebalancing bots allow you to create your own portfolio ratios or copy other users' portfolio. With this feature you can rebalance your assets into USDT or BTC and manage your customized portfolio. However, the portfolio rebalancing is only available for Huobi, Binance and Bittrex. 

Features

Grid Bots
Signal Bots
DCA Bots
Periodic Bots
Rebalancing Bots
Paper Trading
Portfolio Tracking

Supported Exchanges

Spot Exchanges (14)

Binance
OKEx
Coinbase Pro
Binance US
Bitfinex
Bitstamp
Bittrex
Bybit
Deribit
Gemini
Huobi
Kraken
Crypto.com
Gate.io

Futures Exchanges (4)

Binance
Bybit
BitMEX
Gate.io

Platforms

Web-based
Android
iPhone
iPad
unnamed.png

Pionex

Commission

Pionex is an international cryptocurrency platform that has grown over the years since it was first launched in 2019. It is one of the first crypto exchanges to offer free built-in automated trading bots. It also provides easy trading access through its mobile app.

With its large number of customers worldwide, Pionex handles almost 5 billion worth of trade volumes each passing month. It also aggregates the liquidity from the two biggest crypto exchanges, Binance and Houbi Global. Not to mention, it supports over 120 cryptocurrencies which its users love.

Aside from that, Pionex is regulated in both the US and Singapore to support its worldwide users. The main goal of this trading bot is to help traders grow their investments with their easy-in-build trading bots and their integrated exchange.

By using this feature, users will be able to hold their coins/tokens effectively. You can choose between dual-coin and multi-coins modes depending on how you want to hold your coins. The minimum requirement for having a single currency in this bot is 100 USDT.

The Pionex rebalancing feature helps traders hold on to assets that they have been optimistic about for a long time. It can rebalance in the dual-coin mode and multi-coin mode. In the dual coin mode, the trader can allocate two coins simultaneously, and it is best to choose mainstream coins like ETH and BTC. Once the coins are selected, the amount of funds to be invested start off the bot. And in the multi-coin mode, a trader can allocate over 10 coins. Industry experts and leaders recommend the indexes used in the Pionex rebalancing bot.

Features

Grid Bots
DCA Bots
Periodic Bots
Arbitrage Bots
Rebalancing Bots
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (1)

Pionex

Platforms

Web-based
Android
iPhone
iPad
Binance.png

Binance Bots

Commission

While you've probably heard of Binance, the world's biggest exchange, you may not know that it offers a few choices for automated trading on its platform.

Binance provides Spot Grid, Futures Grid, and TWAP Futures bot. If you are a Binance user, then you may want to consider using their integrated trading bots. 

 

Features

Grid Bots
Periodic Bots
Rebalancing Bots
Portfolio Tracking

Supported Exchanges

Spot Exchanges (1)

Binance

Platforms

Web-based
Android
iPhone
iPad
Mac
Windows
Shrimpy.png

Shrimpy

From $180/year

Shrimpy is a crypto trading platform focused on portfolio management. The platform supports ten exchanges, 13 wallets, and cold storage tracking, allowing crypto investors to get a birds-eye view of their portfolio value from a central place.

Shrimpy's features offer serious crypto investors a solid solution for their portfolio management and tracking needs.

You can easily keep your portfolio balanced thanks to Shrimpy's portfolio rebalancing feature. Shrimpy offers two rebalancing strategies: periodic and by threshold. With periodic rebalancing, the platform checks the asset distribution periodically and rebalances the assets if necessary. With the threshold rebalancing method, the platform monitors each asset's distribution and when an asset exceeds a certain threshold (15% change by default), it will rebalance the portfolio.

Features

Periodic Bots
Rebalancing Bots
Copy Trading
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (17)

Binance
OKEx
KuCoin
Coinbase Pro
Binance US
Bitfinex
Bitstamp
Bittrex
Gemini
Kraken
Poloniex
CEX
Huobi Global
Gate.io
HitBTC
Bibox
Bittrex Global

Platforms

Web-based
Coinrule-2.webp

Coinrule

From $359/year

Automated Crypto Trading Bots Made Easy

Features

Grid Bots
Signal Bots
DCA Bots
Periodic Bots
Arbitrage Bots
Rebalancing Bots
Paper Trading

Supported Exchanges

Spot Exchanges (9)

Binance
OKEx
KuCoin
Coinbase Pro
Bitstamp
Kraken
Poloniex
BitMEX
HitBTC

Platforms

Web-based
KuCoin.png

KuCoin Bots

Commission

Get Your First Coin in Minutes

Features

Grid Bots
Periodic Bots
Rebalancing Bots
Portfolio Tracking

Supported Exchanges

Spot Exchanges (1)

KuCoin

Platforms

Web-based
Android
iPhone
iPad
Gate.io.png

Gate.io Bots

Commission

Trade Anywhere Anytime

Features

Grid Bots
Arbitrage Bots
Rebalancing Bots
Copy Trading
Portfolio Tracking

Supported Exchanges

Spot Exchanges (1)

Gate.io

Platforms

Web-based
Android
iPhone
iPad
Mac
Windows
Quadency.png

Quadency

Commission

Unify Your Crypto Trading Experience

Features

Grid Bots
Signal Bots
DCA Bots
Arbitrage Bots
Rebalancing Bots
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (13)

Binance
OKEx
KuCoin
Coinbase Pro
Binance US
Bitfinex
Bittrex
Gemini
Kraken
Liquid
Poloniex
AAX
HitBTC

Platforms

Web-based
Android
iPhone
iPad
Stacked.jpeg

Stacked

From $99/year

Meet the future of crypto investing

Features

Rebalancing Bots
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (8)

Binance
KuCoin
Coinbase
Bitfinex
Bybit
AAX
Phemex
BitMEX

Platforms

Mudrex.jpeg

Mudrex

Commission

Easiest way to invest in crypto

Features

Signal Bots
DCA Bots
Rebalancing Bots
Backtesting
Paper Trading
Portfolio Tracking

Supported Exchanges

Spot Exchanges (4)

Binance
OKEx
Coinbase Pro
Binance US

Futures Exchanges (5)

Binance
OKEx
Bybit
Deribit
BitMEX

Platforms

Web-based
Android
iPhone
iPad
Mercor Finance.png

Mercor

Decentralized Crypto Bot Marketplace.

Features

Signal Bots
Rebalancing Bots
Copy Trading
Backtesting
Portfolio Tracking

Supported Exchanges

Platforms

Web-based
Hodlbot.png

Hodlbot

From $96/year

Cryptocurrency Investing on Autopilot

Features

Periodic Bots
Rebalancing Bots
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (4)

Binance
KuCoin
Bittrex
Kraken

Platforms

Web-based
ec69fc722c354feda9913a32141b8bb8.jpg

Stoic

From $108/year
Commission

Automated Crypto Investing while you sleep

Features

Rebalancing Bots

Supported Exchanges

Spot Exchanges (2)

Binance
Binance US

Platforms

Web-based
eToro.png

eToro

Commission

Invest better together

Features

Rebalancing Bots
Copy Trading
Paper Trading
Portfolio Tracking

Supported Exchanges

Platforms

Web-based
Android
iPhone
iPad
Mac
Windows
Tuned.png

Tuned

From $900/year

Lightning-fast trade automation

Features

Signal Bots
Rebalancing Bots
Copy Trading
Backtesting
Paper Trading
Portfolio Tracking

Supported Exchanges

Spot Exchanges (6)

Binance
Coinbase Pro
Bybit
Huobi
Kraken
BitMEX

Platforms

Web-based
Android
iPhone
iPad
Botsfolio.png

Botsfolio

From $60/year
Commission

Use best financial tools to grow your wealth.

Features

Signal Bots
Rebalancing Bots

Supported Exchanges

Spot Exchanges (3)

Binance
OKEx
Coinbase Pro

Platforms

Web-based
Android
iPhone
iPad
Cryptx Terminal.png

Cryptx Terminal

From $400/year

Cryptx Terminal is an online crypto trading terminal with basic automation features. Cryptx is a good option for traders and investors of all skill levels who want to trade across exchanges from one single interface. 

Although Cryptx Terminal is somewhat limited in features, according to my testing, users may enjoy the simplicity and clean interface.

Cryptx portfolio rebalancing bots come with all the features you'd expect to maintain your desired portfolio allocation.

Features

Signal Bots
Arbitrage Bots
Rebalancing Bots
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (10)

Binance
OKEx
KuCoin
Coinbase Pro
Binance US
Bitfinex
Bitstamp
Bittrex
Kraken
HitBTC

Platforms

Web-based
Coinmatic.png

Coinmatic

Commission

Invest in Bitcoin and crypto more wisely.

Features

Periodic Bots
Rebalancing Bots
Portfolio Tracking

Supported Exchanges

Spot Exchanges (1)

Kraken

Platforms

Web-based
bmybit.jpg

Bmybit

DeFi | Automated Cryptocurrency Trading

Features

Signal Bots
Rebalancing Bots

Supported Exchanges

Spot Exchanges (2)

Binance
OKEx

Platforms

Web-based
Holderlab.jpeg

Holderlab

From $95/year

Get your crypto portfolio ready in 5 minutes.

Features

Rebalancing Bots
Copy Trading
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (11)

Binance
OKEx
KuCoin
Bitfinex
Bittrex
Huobi
Kraken
Poloniex
HitBTC
Bibox
Beaxy

Platforms

Web-based
Aperium Tech.png

Aperium Tech

From $96/year

Make your clients life easier with Signal and Automation single point of charging.

Features

Signal Bots
Rebalancing Bots
Copy Trading

Supported Exchanges

Spot Exchanges (1)

Binance

Platforms

Web-based
Pluto.jpeg

Pluto

FREE

Automatic investing is a click away.

Features

Signal Bots
Rebalancing Bots
Copy Trading
Backtesting
Paper Trading

Supported Exchanges

Platforms

Web-based
Extrum.png

Extrum

Automatic Crypto-Asset Management

Features

Rebalancing Bots
Paper Trading
Portfolio Tracking

Supported Exchanges

Spot Exchanges (6)

Binance
KuCoin
Coinbase Pro
Kraken
Poloniex
AscendEX

Platforms

Web-based
Wealth Square.png

WealthSquare

Take control of your digital assets

Features

Periodic Bots
Rebalancing Bots
Backtesting
Portfolio Tracking

Supported Exchanges

Spot Exchanges (1)

Binance

Platforms

Web-based

Skyrocket your profits with the most advanced trading bots in the market